You’ve probably heard about bitcoin and some of the stories surrounding it. It is one of the most popular cryptocurrencies that have existed for quite some time and has wide usage.
The term cryptocurrency generally refers to digital money hence the transactions are carried online. This makes it a quick and effective monetary transactions system but also vulnerable to online attacks and malice.
Other than bitcoin, there is Playkey Token (PKT) which is also gaining popularity.
Here are more details about it and other digital coins in general. You can reach out to PacketCrypt’s Official website for more details.
What is PKT?
As mentioned before, it refers to Playkey Token which is a relatively new cryptocurrency. It is the chosen Crypto for the Playkey decentralized cloud gaming system that aims to revolutionize and improve on online gaming worldwide.
Apart from gaming, it also has other uses, payment transactions and investment purposes being among the most common. One can acquire it by purchasing it using a credit card or through mining. It operates on the Ethereum platform.
Also Read: Crypto Tips: Steps to Buy Your First Bitcoin
How does it work?
The transactions are facilitated using blockchain technology. It can be described as the public receipt of all transactions that take place hence keeps on growing like a chain.
The coins can’t be duplicated and so can be tracked through every transaction where they are involved. To be able to use them you must have a digital wallet where you store them. This is usually an online app.
It comes with a private key that is used for signing off on transactions just like on paper checks and other legitimate documents. You purchase the coins from the vendor using real money through your credit card and then store them in your digital wallet.
What are the advantages of Cryptocurrency?
The fact that they are different from traditional monetary systems gives them certain advantages. Here are some of them.
It is decentralized
As opposed to the banking system that is centrally operated and governed it is decentralized. This saves you from the hassle of dealing with the bank every time you need to make a transaction.
You can simply pay someone using the digital coins at the comfort of your home or workplace. It is more convenient than writing someone a check and having them go to the bank to cash it.
Nowadays, there are business premises that accept payment for goods and services using certain digital coins.
It can earn you great returns
While it is true that the value of returns is unpredictable and depends on how much money people are willing to pay for the coins it can still earn you great profit.
Those who are in it for investment purposes usually buy them and wait for the prices to rise before they can sell them.
This, however, requires patience and cannot be solely relied upon as the main source of income. There are no predefined interest rates.
It has an effective technology at the backbone
Although it is not controlled by the government the world of cryptocurrency can be seen as one big organized system with various processes to ensure that things run smoothly.
Blockchain technology is effective in managing the various services required. Experts are regularly working to improve the security and efficiency of the system. Click here to see a few advantages of using cryptos.
What are the disadvantages?
Like any other system, it has its disadvantages. These include:
It refers to a form of an attack whereby malicious hackers gain access to your system and use its processing power to mine crypto.
This will affect the performance of your device and generally slow it down. The best way to avoid it is to use effective antivirus software that can identify and destroy malicious software.
Being an online system, it is susceptible to lots of attacks that can set you back a great deal. Thus, keenness is of the essence.
Low level of accountability
Since the transactions are being done directly from one person to another in the absence of a governing third-party the level of accountability is very low.
As opposed to banking systems where you can involve the government if your money is misappropriated here you can’t sue anyone. Most platforms also do not support the reversal of transactions.
Some allow for a reversal but only in the form of real money and not crypto hence you can lose lots of money. All these loopholes make it prone to scammers.
As mentioned before there is no guaranteed amount of returns. Depending on what people are willing to pay your investment returns can either be low or high.
There is no cash-flow or business growth involved to ensure profits. It is for this reason that most successful businesspersons advise against the use of crypto for investments.
A rise in returns is almost necessarily followed by a great fall since high prices deter more people from buying the coins. See this link to know more https://economictimes.indiatimes.com/definition/volatility
The world of crypto is highly unregulated hence requires utmost care while navigating it. There are lots of scammers who are out to swindle unaware users. Thus, you should do your research properly to be able to make well-informed decisions.
It is recommended that you use it only for payment transactions and not investments. There is no stable business involved in it to ensure cash-flow and growth translating to profits. The returns are influenced by how much money buyers are willing to pay for the coins.
However, if you decide to invest then you should be patient enough to wait for the rise no matter how long it takes.